Latest data released by Markit - 21 February 2020
The beat in services and composite readings will give the euro some reprieve as it crosses the first hurdle of the day. But the key one to watch will be Germany as it has heavier ties to China, so be mindful of the manufacturing print later.
For now, the euro can breathe a bit of relief but we're not in the clear just yet.
Markit notes that:
"Faster private sector growth in February can be solely attributed to services, where the expansion in activity was the quickest for four months. Meanwhile, there was fresh disappointment in the manufacturing sector.
Despite PMI data signalling green shoots for manufacturers in recent months, there was a renewed production decline in February. A first output contraction for five months came amid several headwinds for demand and a subsequent reduction in new orders. Automotive sector weakness, the prolonged discontinuation of Boeing 737 Max production and supply-chain issues related to the coronavirus, all negatively impacted on French manufacturers in the latest survey period."
